HSL Properties executive vice president Omar Mireles tells GlobeSt.com the complex on 10700 N. La Reserve Dr. had been financed with a loan originated by Lehman Brothers when acquired by S-J Management in 2007. However, as in similar cases, the loan matured in April, the owner couldn't line up refinancing, and the property went into default. "They put a receiver in place beginning in April and started the foreclosure process," Mireles says. "This culminated in a trustee sale on August 18."

Mireles says the asset, built in 1988, fits perfectly with HSL Properties' requirements for acquisition. "This is an A-quality property, save for the age, which would bring it to an A-minus," he says. "It's in an incredible location with really wonderful floor plans."

La Reserve Villas has had a somewhat checkered history since 2006. At that time, Dial Equities of Omaha sold the complex to 20/20 GP LLC for $30 million. The Canadian buyer had plans to convert the units into condominiums, but ran full-tilt into a stalled condo market. As a result, the complex traded hands again in 2007, with Seattle-based S-J Management paying $28.65 million. The property was maintained as a rental and is 96% occupied.

Mireles says La Reserve Villas' vagabond history is coming to an end. "Like the rest of the properties we're looking at, we have a long-term hold planned," he explains. "The property is in excellent condition. There are minor items we'll address, but no major renovations planned."

In the meantime, HSL Properties is continuing to look for likely buys, and Mireles says there are a few more trustee sales lined up. One asset of interest is the foreclosed 340-unit Sienna at Riverview in Mesa, AZ, which is scheduled to reach the auction block Sept. 1.